Prosperity Bancshares (NYSE:PB) Given “Neutral” Rating at DA Davidson

DA Davidson restated their neutral rating on shares of Prosperity Bancshares (NYSE:PB) in a research note published on Thursday morning, MarketBeat Ratings reports. The firm currently has a $76.00 target price on the bank’s stock.

Several other research analysts have also recently issued reports on PB. Hovde Group lifted their target price on Prosperity Bancshares from $75.00 to $77.00 and gave the company an “outperform” rating in a research report on Thursday. TD Cowen reiterated a “buy” rating on shares of Prosperity Bancshares in a research note on Wednesday, January 7th. Royal Bank Of Canada lowered their target price on shares of Prosperity Bancshares from $78.00 to $72.00 and set a “sector perform” rating for the company in a report on Friday, October 10th. Barclays set a $75.00 price target on shares of Prosperity Bancshares in a report on Thursday. Finally, Raymond James Financial lowered shares of Prosperity Bancshares from an “outperform” rating to a “market perform” rating in a research note on Wednesday, January 7th. Seven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $79.31.

Prosperity Bancshares Price Performance

NYSE:PB opened at $68.41 on Thursday. Prosperity Bancshares has a one year low of $61.06 and a one year high of $81.53. The company has a market cap of $6.50 billion, a PE ratio of 11.94, a PEG ratio of 0.88 and a beta of 0.68. The firm has a 50-day moving average of $70.91 and a 200-day moving average of $68.31.

Prosperity Bancshares (NYSE:PB) last announced its quarterly earnings results on Wednesday, January 28th. The bank reported $1.46 earnings per share for the quarter, beating the consensus estimate of $1.45 by $0.01. The business had revenue of $317.73 million for the quarter, compared to analysts’ expectations of $319.30 million. Prosperity Bancshares had a net margin of 31.22% and a return on equity of 7.11%. The firm’s revenue for the quarter was down 5.9% compared to the same quarter last year. During the same quarter last year, the firm earned $1.37 EPS. On average, equities research analysts expect that Prosperity Bancshares will post 5.83 earnings per share for the current fiscal year.

Prosperity Bancshares Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be given a $0.60 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $2.40 annualized dividend and a yield of 3.5%. Prosperity Bancshares’s payout ratio is currently 42.78%.

Insider Activity

In other Prosperity Bancshares news, Director Ned S. Holmes sold 600 shares of the stock in a transaction on Wednesday, November 5th. The stock was sold at an average price of $66.84, for a total transaction of $40,104.00. Following the completion of the transaction, the director directly owned 43,300 shares of the company’s stock, valued at approximately $2,894,172. This represents a 1.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Leah Henderson sold 1,050 shares of the business’s stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $73.00, for a total value of $76,650.00. Following the completion of the sale, the director owned 8,075 shares in the company, valued at approximately $589,475. The trade was a 11.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 16,150 shares of company stock valued at $1,129,356 in the last three months. Company insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in Prosperity Bancshares by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 10,256,927 shares of the bank’s stock valued at $708,856,000 after acquiring an additional 140,035 shares during the period. State Street Corp raised its position in shares of Prosperity Bancshares by 6.6% in the third quarter. State Street Corp now owns 5,580,039 shares of the bank’s stock valued at $373,231,000 after purchasing an additional 343,062 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of Prosperity Bancshares by 0.6% during the 3rd quarter. Dimensional Fund Advisors LP now owns 4,784,022 shares of the bank’s stock valued at $317,416,000 after buying an additional 28,994 shares in the last quarter. AQR Capital Management LLC boosted its holdings in Prosperity Bancshares by 43.6% in the 3rd quarter. AQR Capital Management LLC now owns 3,421,408 shares of the bank’s stock worth $226,531,000 after buying an additional 1,038,246 shares during the period. Finally, American Century Companies Inc. boosted its holdings in Prosperity Bancshares by 48.7% in the 3rd quarter. American Century Companies Inc. now owns 2,122,031 shares of the bank’s stock worth $140,797,000 after buying an additional 695,114 shares during the period. Institutional investors own 80.69% of the company’s stock.

Key Headlines Impacting Prosperity Bancshares

Here are the key news stories impacting Prosperity Bancshares this week:

• Positive Sentiment: Strategic rationale: the Stellar Bancorp deal expands Prosperity’s Texas footprint and deposit franchise, creating the second‑largest Texas bank by deposits — a scale/market share story that can support longer‑term growth. PROSPERITY BANCSHARES, INC.® AND STELLAR BANCORP, INC.
• Positive Sentiment: Analyst upgrade/target lift: Hovde Group raised its price target to $77 and rates PB “outperform,” signaling some analysts see the deal and recent results as accretive/opportunity. Finviz: Hovde raise
• Neutral Sentiment: Q4 results: Prosperity reported $1.46 EPS, beating consensus by $0.01, but revenues were slightly below estimates and down ~5.9% year‑over‑year. That keeps fundamentals mixed — modest earnings beat but soft top‑line. Q4 earnings press release / call
• Neutral Sentiment: DA Davidson reaffirmed a “neutral” rating with a $76 price target (implying upside from current levels), reflecting mixed analyst views on the acquisition’s near‑term impact. DA Davidson note
• Negative Sentiment: Immediate market reaction: shares initially sold off on the Stellar deal (reports noted a ~7–9% drop) as investors weighed transaction cost, dilution and execution risk. That volatility is likely driving intraday swings. Zacks: stock dips on Stellar deal
• Negative Sentiment: Insider selling: Director Ned S. Holmes reported small sales (600 and 500 shares) around $66.67–$66.69 on Jan. 28; while modest in dollar terms, insider sales can be perceived negatively by some investors. SEC filing: Holmes sale
• Negative Sentiment: Potential deal litigation/investigation: a plaintiff‑side law firm has flagged the Stellar transaction for review of price/process, which could introduce execution risk or delay. BusinessWire: investor alert

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc is a holding company for Prosperity Bank, offering a broad range of commercial and consumer banking services across Texas, Oklahoma, Arkansas and Louisiana. Through its network of branches and digital platforms, the company provides deposit products, business and real estate lending, treasury management, mortgage origination and servicing, as well as wealth management and trust services.

Originally chartered in 1911 as First National Bank in McKinney, Texas, the organization rebranded to Prosperity Bank in 2009 following a series of strategic acquisitions aimed at deepening its regional presence.